Debit Card Fees: Bank of America Cancels $5 Charge (VIDEO)

Responds to Customer Complaints, Account Closings

Bowing to pressure from customers the Bank of America has dropped its proposed $5 debit card fees.

In Retreat, Bank of America Cancels Debit Card Fee

Stock shares of the nation’s second largest bank lost 3 percent in value onTuesday.

The attempt to impose debit card fees by the bank was an effort to try to compensate money lost because of overdraft fee changes. However, the U-turn is being seen as a victory for disgruntled customers.

Bank of America faced competition from other banks who saw the opportunity for a strategic play by advertising they would not charge the bank card fees.

Last week, JPMorgan Chase and Wells Fargo & Company decided to cancel test programs. SunTrust Banks and Regions Financial Corp said they would not only end the monthly charges, but reimburse customers.

Bank of America had staunchly defended its planned $5 fee until Friday when it relented after the uproar. The bank’s Chief Operating Officer David Darnell told The New York Times, “We have listened to our customers very closely over the last few weeks and recognize their concern.”